Annual Leave and Its Role in Business Success
Published: 22/11/2021
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This blog article discusses the modern corporate approach to annual leave. We aim to convey that a responsible attitude toward employee time off will enhance their well-being and benefit your organisation as a whole.
When we think of a dedicated employee, we often envision someone who works tirelessly to achieve business goals. They give the company more than what is expected of them—including their time. Working longer hours or not taking time off is viewed as a sign of dedication—and, therefore, an admirable trait.
This mindset is misguided. In this blog, we will explain why it can be very harmful to your business.
In the UK, it’s a law that every employee, whether full-time or part-time, is entitled to a minimum of 28 paid days of annual leave. However, statistics show that a large percentage of workers do not utilise this benefit. Depending on their circumstances and policies, companies can grant their staff additional days of paid leave, but not fewer.
However, a study by the Trades Union Congress (TUC) has shown that 2.2 million employees do not receive their holiday entitlement. Reasons for this vary, ranging from malice on the employer’s part to employees feeling overwhelmed by their workload, which makes them believe they cannot take time off.
Even if there is no legal requirement to provide your staff with sufficient paid time off and if you’re innocent of foul play, it’s still crucial to ensure your employees rest. Let’s discuss why it matters and how to achieve it.
Burnouts have long been normalised, and this is wrong. They lead to decreased productivity and overall dissatisfaction with the job, which is likely to negatively impact your business and office culture.
The most common causes of burnout are frequent overtime and employees’ reluctance to take time off. While you’re legally permitted to require your staff to take annual leave (with sufficient notice), tackling overtime is more challenging. First, it can be difficult to determine whether it’s a frequent issue or a one-off occurrence. Addressing it with sufficient evidence presents another challenge.
To solve both issues simultaneously, we suggest adopting a digital solution. Specifically, it should include both a holiday management system and employee time tracking features. This will enable you to identify unhealthy overtime patterns and facilitate working through them.
Fatigue, both mental and physical, makes staff more prone to accidents. This is especially true in workplaces that require a lot of manual labour, such as construction. In office jobs, more frequent opportunities to rest could reduce stress. Overworked employees can make business mistakes and cause financial losses.
Additionally, effective holiday management is known to reduce the number of sick leave days taken by staff. It’s a common issue for employees to falsely claim illness to obtain a day off. A healthy approach and system for booking time off will eliminate the need for them to lie.
A centralised holiday management platform can benefit your entire team. Managers with a comprehensive view of the future schedule can easily approve or reject holiday requests. Additionally, it will enhance their ability to manage the risk of being understaffed.
For employees, such visibility means optimising their workflows in advance. A system that keeps the entire organisation informed about who is off and when can drive significant productivity improvements.
Employee well-being is essential because employees are human. This approach helps keep your staff healthy and happy while minimising turnover. But how does it translate into improving business performance?
It’s essential that employees know their well-being is in your best interest. Approach them from a standpoint of empathy and show them you prioritise them as individuals over the jobs they are assigned to do. Not only will this build trust over time, but it will also help your employees understand that they matter to you.
Staff who feel valued and appreciated tend to work harder. Additionally, strive to maintain transparency with your team regarding all aspects of the business, including holiday schedules. Consider a solution like Timesheet Portal to create a centralised view of annual leave that is accessible to everyone.
Routine is the greatest enemy of inspiration. It tends to creep in even among people in highly creative industries. A lack of inspiration prevents staff from exploring new ways to tackle challenges and identify new opportunities.
Inspiration drives innovation and thus the evolution of your business. Therefore, an uninspired team will hold back your growth. Time off provides them with a chance to unwind and return with a fresh perspective, ready to tackle tasks with enthusiasm and an open mind.
As an employer, you also benefit from being hands-on regarding staff holidays. By implementing a designated system, you always have a complete picture when handling incoming annual leave requests. It will also help you identify who needs a gentle push towards claiming their minimum entitlement.
Such visibility enables you to allocate staff and resources in advance, minimising any inconveniences that may arise due to staff absences during holidays. It is particularly beneficial during holiday seasons, such as winter festivities or summer breaks, when most of your team will likely want to take time off.
It’s arguable. Although this approach is trending among big Silicon Valley companies, we now see it being adopted by smaller corporations as well. There’s a clear appeal of this system for both employees and employers. However, it doesn’t always function as effectively in practice as it does in theory.
The truth is that businesses operate in different ways, have different structures, and address different audiences. While it’s an optimal solution for some, it might not be as beneficial for others. Not every company’s operational structure can sustain such an approach. Additionally, sometimes the office culture gets in the way of the initiative. In that scenario, your staff might start competing based on who takes less time off, creating an unhealthy rivalry that damages their performance.
Although businesses are legally obligated to provide employees with at least 28 paid days of annual leave, statistics show that many individuals do not claim their holiday entitlement. The popular belief that this demonstrates dedication and boosts productivity is misguided—it’s quite the opposite.
Not taking time off leads to poorer performance, fatigue, a lack of inspiration, and decreased communication. All of these factors directly impact team morale and, consequently, your business. The solution is to abandon the mindset that your employees are more dedicated when they work overtime or forgo taking time off. Instead, foster a culture that promotes a healthy approach to annual leave.
It’s time to eliminate the norms that harm both people and businesses. Contact us, and we will work together to improve the corporate world.